Asian Refiners Fill Diesel Gap Left by Saudi Arabia in Africa
The ongoing conflict in the Middle East has disrupted diesel supply routes to Africa, with Saudi Arabia's Jazan refinery shutting down after drone and missile strikes by Houthi rebels in July and August 2026.
The attacks damaged the refinery's integrated gasification complex and storage area, forcing it to halt production. The shutdown is expected to have a lasting impact on the region's ability to meet its usual African outlets.
In response to the supply gap, Asian refiners led by India have stepped up diesel shipments to Africa, taking advantage of a price gap between Asian and European markets that makes shipping cargoes westward more attractive.
The shift is also facilitated by China's restart of export capacity, which has helped to fill the Middle Eastern void. According to Alex Yap, senior oil products analyst at Energy Aspects, this mechanism is expected to persist in the short term as long as Saudi tankers keep avoiding Bab-el-Mandeb and Europe fails to offer a sufficient outlet.